§ Mr. MansTo ask the Secretary of State for Defence what is the current estimate of the cost of acquiring the Trident strategic weapon system, and if he will make a statement. [21672]
§ Mr. PortilloThe current estimate of the total acquisition cost of the Trident programme, with all expenditure, including payments already made, brought up to current prices and the exchange rate assumed in the latest long-term costing of the defence programme, is £12,570 million. If payments already made are expressed at the prices and exchange rates actually incurred, with future spend at current economic conditions, the estimate is now £9,955 million. Expenditure on Trident acquisition to 30 September 1996 represented some 86 per cent. of the latter estimate.
The revised estimate of £12,570 million represents a real cost reduction of £29 million since last year. The figures show a cash increase of £417 million, but inflation since last year adds £377 million and exchange rate charges add £69 million. The new total therefore reflects increased efficiency in delivering the programme. The programme also continues to show an overall reduction in real terms on its original 1982 estimate. This reduction, including the savings resulting from the decision to process missiles at the United States facility at Kings Bay, Georgia now stands at over £3.6 billion.
The proportion of the estimate for work undertaken in the United Kingdom is around 70 per cent.
I am pleased to confirm that HMS Vigilant, the third of the four planned Vanguard class submarines, was commissioned on time toward the end of last year and is now engaged in work-up trials. Progress with the fourth submarine, vengeance, also remains satisfactory. I am, as in previous years, sending to the Chairmen of the Public Accounts Committee and of the Select Committee on Defence a more detailed report on the programme. I am also placing a copy of this report in the Library of the House.